4 Reasons Why Cloud ERP Is Ideal for Growing Businesses

4 Reasons Why Cloud ERP Is Ideal for Growing Businesses

A business’s success revolves around the customer; whether established or growing. And a large part of enhancing customer experience is dependent on the tools and technology we use in the day-to-day business operations.

The manufacturing industry is reliant on ERP software to consolidate and disseminate information across the company. Traditionally, ERP softwares was installed on local servers within the organization which is referred to as an on-premise installation. An on-premise ERP solution has always helped organizations function better and they have greatly benefitted them. However, there are certain aspects where they fall short and cannot meet the agility and low maintenance costs like a Cloud ERP solution. With the installation of cloud ERP software, an organization can benefit in a number of ways as compared to their on-site peers.

What is Cloud ERP?

The function of an ERP software is to ease operational challenges in an organization by integrating various verticals like finance, BOMs, human resources, procurement, inventory, vendors and more. Thus leading to more collaboration with process streamlining and improvements among businesses that use ERP software.

A cloud based ERP software runs on cloud servers over the internet. There are two versions of the cloud ERP – a. Where vendors manage the on-premise ERP software hosted at a designated data center b. Where the SaaS, cloud based ERP software is applied.

At SourcePro, the NEW Horizon ERP software can be hosted on Cloud with multi-user architecture which means that all the users are working on the same software version and are only separated at the database level. This helps to create a scale based economy where we maintain only one code base and all integrations and customizations are conducted automatically with every upgrade. Upgrades in a cloud ERP software do not require much effort from the customer and take place more frequently in the Cloud ERP software.

Here’s why you should migrate to a cloud ERP

1. Lower costs

An on-premise ERP software is cost heavy on your business, the cost of installing a cloud ERP is much lower compared to an on-premise installation. The subscription costs are much lower when you consider maintenance and support in this model. Eliminating the cost of hiring a separate team to maintain and upgrade your on-premises software is a vital factor for smaller organizations. A cloud ERP is upgraded remotely and included in the cost of your subscription.

2. Upgrades & maintenance

In case of on-premise installation, from investing in server upgrades and updates to buying additional hardware to support the growing storage needs, all has to be borne by the customer. The Cloud ERP solution brings ease and flexibility. Server updates and maintenance is easier as it’s done centrally by the cloud provider. Also, as organization data grows, the customer doesn’t have to spend on buying additional hardware or servers. All they need is to rent additional server space as per their needs. A cloud ERP software ensures better uptime and security without investing a permanent resource.

3. Access to upcoming technology

Technology today is evolving at a fast pace. And organizations have to surpass rather than keep up with their competitors. With the advent of artificial intelligence, machine learning and various technological innovations, it becomes imperative for an organization to keep pace with the advancements. However, this is not possible without incurring additional costs and investments in expertise and infrastructure. With cloud hosted ERP solutions, organizations can leverage the latest technologies without investing in physical infrastructure.

4. Disaster management and recovery

The best cloud ERP solution ensures the organization is provided with a stable working environment along with business continuity in the event of unplanned downtime or technical issues. A cloud ERP system is supported by stringent recovery policies and procedures like data replication, protection against unwanted data loss situations like theft, natural calamities or a security breach.


It is crucial to select the right cloud ERP company to ensure the transition from on-premise to cloud ERP is smooth and successful. With over 2 decades of expertise in this space, SourcePro has helped many businesses adopt or migrate to a cloud ERP solution. Our New Horizon ERP platform is the best cloud ERP software in India and is customizable for businesses in the manufacturing industry.

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